Device manufacturers, retailers, content producers, and service providers are all positioning themselves to capitalize on the anticipated rapid growth of OTT video. Within five years, In-Stat predicts that two-thirds of US broadband households will be accessing OTT video, generating over $20 billion in revenue. But what kinds of services will consumers favor? Will it be downloading or streaming video content?
This report examines the market for paid OTT video services to the home. The research is based on data collected from a recent In-Stat primary research survey. The report quantifies the number of current OTT video households in the US, the devices being used, sources of online video and how the content is being acquired. OTT video service providers are profiled. The market data is segmented by age group for added clarity. The report also provides five-year OTT video household and revenue forecasts, segmented by acquisition method (download/streaming).
The US Market for Web-Based TV Widgets and Applications
Just about every manufacturer of consumer electronic devices is introducing web-enabled models that support TV applications (formerly known as widgets). By 2014, there will be over 83 million web-enabled CE devices, including digital TVs, Blu-ray players, digital media players/adapters, gaming consoles, and hybrid set-top boxes that can be used to access YouTube videos, receive RSS news and weather feeds, and deliver Netflix or Amazon VOD to the TV. Technology is driving the introduction of TV applications, but what do consumers really want? This report presents the findings from a US primary research study that identifies consumer interest in TV applications and discusses how they can best be productized. In support of the research findings, 2010-2014 device shipment and installed base forecasts are presented. The report also quantifies the number of US households that will operate at least one web-enabled CE device for viewing online video content over the next five years.
OTT Video Platforms, Devices, and Consumer Expectations
Over-the-top (OTT) refers to the delivery of Internet-based multimedia content to the TV over a broadband connection. Content producers, service providers, device manufacturers, alike, are all seeking to create a new OTT video distribution channel for on-demand, Internet-based digital entertainment.
This PowerPoint research report presents a real-world assessment of the OTT video market opportunity. Based on an In-Stat primary research survey of US broadband households, the report quantifies current Internet TV viewing behavior, web-to-TV adoption, and web-enabled CE device requirements. In addition, the research documents consumer expectations regarding the consumption of digital entertainment, identifying OTT video market and content monetization opportunities. For anyone seeking to participate in the emerging OTT video market, this research will prove vital to product and market planning.
3D has been getting a lot of press in 2009 as the number of 3D films shown in cinemas is increasing and consumer electronics manufacturers prepare to offer 3D TV sets in 2010.
3D has been popular with film producers several times over the previous century, only to have interest wane after a few years, so why will it work this time? There will be a common format for home video in Blu-ray, which along with 3D TV sets will offer a high-quality 3D experience. Due to the availability of 3D TVs, content producers are boosting their efforts to shoot and broadcast live events, particularly sports, in 3D. Consumer electronics manufacturers will even bring 3D content creation to the home with 3D camcorders and digital still cameras.
This report looks at the eco-system for 3D: 3D formats, 3D content, consumer interest in 3D, transmitting 3D to the home, and 3D consumer devices. Worldwide five-year forecasts for 3D channels, 3D TV set shipments, ASPs, revenues by region, and 3D Blu-ray player shipments are provided.
Over the next few years there will be significant change occurring in the digital entertainment industry. Whether it's TV Everywhere initiatives, over-the-top video services, Web-to-TV devices, or 3D digital televisions, the market success of each new innovation will be dependent on attracting early adopters of technology. Yet, many of the characteristics that defined early technology adopters in a pre-Internet world no longer apply. Primary research data is used to identify the attributes of today’s broadband consumer households, in terms of both their own perceived attitudes regarding technology adoption, and their actual online behavior. Five-year forecasts of US consumer households segmented by technology adoption and online behavior is presented.
Competing Business Models for the Future of Digital Entertainment
By 2013, In-Stat predicts the home digital entertainment market in the US will total $233 billion. Device manufacturers and retailers, content producers, as well as pay-TV service providers are seeking to ensure their piece of the revenue pie. Yet, technology, consumer preference, and conflicting corporate goals cloud the outcome. This research presents the market vision for the three industry sectors. Against this perfect-world backdrop, key market elements, such as retail disc sales vs. electronic sell-through, and web-to-TV vs. TV Everywhere are evaluated. Based on these assessments, a vision of the future digital entertainment market comes into focus. A five-year digital content ownership forecast, covering video disc sales, EST, rentals and downloads supports the research conclusions. In addition, a home digital entertainment revenue forecast, that includes CE devices, broadcast and online advertising, and service subscription revenue is presented.
The battle between digital entertainment content protection and content usage has been heating up. Copy protection, watermarks, digital fingerprinting, and conditional access are all technologies used to enforce copyright protection. Yet, attempting to stop the 12 billion illegal P2P downloads occurring annually in the US is being called pointless. What is needed is a new approach to monetizing digital content.
This research briefing provides a detailed examination of the shift from content protection to a two-pronged strategy that involves digital rights information management, as well competing with P2P file sharing services. In-Stat’s primary research identifies consumer expectations and content consumption behavior. The outlined digital rights management strategy has the potential not only to create a market where content producer and consumer expectations are aligned, but one that can generate an added $2.5 billion in annual revenue by migrating P2P file sharers to legal services.
Consumers are increasingly viewing TV content online. The on-demand, Web-user experience fits our busy lifestyles more than broadcast TV. What consumers really want is the online video viewing experience on their HDTVs. A wide variety of devices and technologies are making the Web-to-TV market a reality. This research briefing provides an in-depth look at the online video services, alternative devices, consumer preferences, upcoming content optimization, and revenue opportunities for Web-to-TV. Five-year device and service revenue forecasts are segmented by device type. The research briefing offers insight into how Web-to-TV video content will be consumed in the future. It also examines how Web-to-TV will alter content producer, TV network, and pay-TV service provider business models.
The game console business is extremely costly, and coupled with a dismal economy, Microsoft, Nintendo, and Sony each have turned to online gaming to generate additional revenue. Clearly, in order to take advantage of online gaming, consumers must own a game console. While game console shipments are entering a decline, subscription growth to online game services is expected to occur as a result of the sizable video game console installed base and a growing consumer awareness and comfort with online gaming. From 2005 to 2013, annualized growth of console and handheld subscribers combined will be 20.4%.
In-Stat’s latest gaming report contains forecasts for online game subscribers annually through 2013 for online-capable game console and handheld consoles. Forecasts for each console include an annual console installed base, the number of subscribers (free or paid), subscription revenue, paid download revenue, and online advertising revenue. This report does not forecast PC online gaming or casual gaming. Analyses are provided for the online console strategies of Microsoft, Nintendo, and Sony, as well as the online handheld strategies of Nintendo and Sony.
Monetizing the Internet Using Web 2.0 Business Models
This MS PowerPoint research briefing, entitled Monetizing the Internet Using Web 2.0 Business Models, #IN0904402CM, March 2009, examines how businesses detrimentally impacted by the Internet can revitalize themselves using a Web 2.0 business model. The research includes a review of Web 2.0 principles, as well as an in-depth analysis of consumer Internet behavior, based on insightful primary research from In-Stat. Key elements of Web 2.0 business models are identified, along with their impact on device markets. Major organizational challenges are also outlined.
Two case studies are used as examples of how Web 2.0 business models can transform legacy market sectors. Newspaper 2.0 applies a new business model to the rapidly dying newspaper industry. Telco 2.0 applies a similar web-based business model to the wireline telephony market. The two case studies have interesting similarities, and possibly a common future.
The old war between legacy industries and the .com world is no longer a winner-take-all proposition. This research briefing will open your eyes to a completely new way of leveraging and monetizing the Internet.
As 2008 wound down to a dismal close, In-Stat fielded a consumer survey to ascertain how the economic turmoil is likely to affect consumers' spending plans. We also included a battery of questions about TV viewing and multitasking habits. While the economy is definitely going to slow down consumer spending, new applications that combine TV and the Internet can continue to develop, because there is no new cost involved for consumers. We estimate that over 66 million US consumers are simultaneously using a PC while watching TV. With broadband service becoming nearly ubiquitous, and consumers using a PC while watching TV, Harris' Dynacast product shows one way to "marry" TV to people simultaneously viewing a related website, and transform the World Wide Web into a "lean back" experience.
Virtual Worlds and Web 3.0: Examined, Compared, Analyzed
Virtual worlds are online, computer-generated simulations of life-like or fantasy environments where users guide their “avatar,” or digital representation of their physical selves, to accomplish various goals. Typical virtual world activities include meeting and socializing with other avatars, buying and selling virtual items, playing games, and creating and decorating virtual homes and properties.
Within the context of the evolution of the Internet from Web 1.0 to Web 3.0, Virtual worlds—especially the 3D kinds—are classified under the Web 3.0 category because of their profound ability to integrate multiple types of content, information sources, and feeds into one highly engaging and interactive format. In addition to Web 3.0 applicability, In-Stat has identified nine other critical components of virtual worlds, including user-generated content, social networking, virtual items, an economy, and business integration, to name a few. In-Stat then rated each virtual world company according to these ten components. All ten platforms scored the maximum points possible in the social networking category, which emerges as the one critical element to virtual worlds.
Virtual world companies earn close to 90% of their revenue from the sale of virtual items, currency, land, and fees associated with these items. Total registered users of virtual worlds are expected to exceed 1 billion and total revenue is expected to exceed US$3 billion by 2012.
Online video is a wildly growing industry. We have analyzed the market, leveraging a recent consumer survey along with several In-Stat datasets to provide an in-depth discussion of the issues, and we analyzed the scenarios that will drive the business models forward.
Primarily, we provide a forecast for broadband penetration and growth in online video viewers. By 2012, for instance, In-Stat forecasts that 90% of US households will have access to broadband, with 94% of these individuals watching online video—this is up from an estimated 77.8% of broadband users in 2008 watching online video.
Broadband is perhaps the greatest predictor of online video growth and expansion. This forecast, the foundation of which is based on primary research, shows the development and maturation of the online video market.
What is now seen as a predominantly younger pastime will spread to encompass a wider group of people, in part due to the aging of current online video viewers but also as a result of word of mouth, spread of services, growth of in-home networks, and support within the consumer electronic device markets.
By 2012, we anticipate the online video market to eclipse US$ 4.5 billion, growing from US$ 1.2 billion (CAGR of 39%) in 2007.
US Consumers Weigh In on Mobile Video Content Choices
In the past year, the mobile video market has shifted radically, and two forces have emerged to radically change the definition of "mobile video." First, Internet delivery of user-generated and professional content is moving viewers from their living rooms to their computers. Second, high-quality mobile devices that use wireless networks (such as Apple's Wi-Fi iPhone and iPod Touch) are improving mobile access to the Internet in general. As a result, "Internet video" increasingly means "mobile video."
This research uses innovative survey techniques to provide an in-depth comparison of US consumer attitudes toward various types of mobile video content delivered over cellular, broadcast, and Wi-Fi networks as well as device preferences and content sources.
In-Stat's 2008 survey illuminated interesting trends and adjustments in the ways people think about mobile video.
In-Stat also defines potential usage models that highlight the benefits of mobile video solutions offered by mobile operators, time-shifting and place-shifting hardware, as well as portable media players and similar devices. Unlike other research that is available, this report also includes an analysis of the ATSC M/H standard now being tested for use by US broadcasters.
TV Advertising is being impacted by the Internet and by mobile services that provide highly personalized content delivery. Traditional TV programs deliver the most repeatable audiences. Subscription TV Networks are adding new, more finely targeted TV channels.
Some of the findings in this report are: -Traditional TV programming provides an excellent mechanism for delivering Addressable Advertising. -The infrastructures for TV program delivery are complex, and intertwined. They present advertisers with a wide range of choices that overlap, duplicate, or have exclusivity. -Advertising buyers understand the complex nature of the US media delivery industry. It will take them time to adapt to new hardware-based opportunities that seem so promising. -Nationwide Broadcast Networks and Subscription TV Networks will continue to be the best delivery vehicles for mass market TV advertising. -Advertising that targets identifiable ethnic, cultural, language or special-interest audiences will see above-average growth rates through 2012. -Geographic advertising is expected to grow to about 30% of US TV ad spending. The Cable TV industry's Project Canoe initiative will help drive this trend forward. -Hardware-Based Addressable Advertising solutions already exist on the Internet, and solutions based on Set Top Box addressability will be growing on a market-by-market basis.
In the past thirteen years that online social networking has been in the United States, it has garnered large amounts of venture capital and captured the interest of the younger generation of Internet users. Despite the vast popularity of social networking, the revenue streams have not been as high as expected and companies struggle to find an effective monetization model. This report covers a brief history of social networking, the groups that participate, different models of monetization—both current and potentially future—and contains the results of an In-Stat survey about online social networking.
US Mobile Social Networking and the Millennial Generation
This In-Dustry Update defines social networking, discusses the migration of social networks to mobile technology, and examines the heaviest base of mobile networking—the millennial generation. The millennial generation refers to people born between 1981 and 2000.
This report provides a historical overview of social networking, discusses the migration to mobile devices, distinguishes between several different types of mobile social networks, and provides a forecast of all US mobile social networking subscribers through 2012.
In addition, we examine the technologies behind mobile social networking and include the results of an In-Stat survey about mobile data usage.
Online Gaming in Asia: Strong Potential for Growth
Revenue for the online gaming market in the Asia/Pacific region is expected to grow rapidly between 2008 and 2013 as consumer awareness increases and new technologies allow for greater content and variety of games. Total revenue for the Asia/Pacific region stood at US$5.8 billion in 2007 and is expected to reach US$21.1 billion in 2013, a CAGR of 20.6%.
The major factors driving this growth include growing household Internet penetration, increased content development for online-specific games, wider access mediums to accelerate demand, and the unique experience that online gaming offers. Online games are no longer restricted to slow-action strategy games. Faster connections are allowing the popular Massive Multiplayer Online Role-Playing Games (MMORPGs) to be developed and enter the mainstream. In turn, this is rapidly increasing consumer acceptance of the Internet as an entertainment medium.
It is also worth mentioning that China is the fastest-growing market for online gaming and is expected to become the largest market in Asia in 2009. At present, more than 50% of the online games played in China are locally developed, and some are being exported overseas.
This report answers the following questions: -What is the likely size of the online gaming market in the future? -How are prices adjusting to changing demand? -Who are the leading suppliers in the market? -How are regional markets being affected? -What are the expectations for future growth?
User-generated video (UGV), and the video sharing sites that exemplify this form of content, have spread across the globe. China is a prime example of UGV’s global reach and appeal, capturing a significant portion of the world market, making it second only to the US. But, despite the near universal appeal of video sharing sites, the market remains fluid and dynamic, constantly evolving and redefining itself. In light of the mergers and acquisitions, lawsuits, and a writers strike, it is clear that online video has made an indelible impact on the world of entertainment and the businesses that operate in this arena.
In this report, In-Stat analyzes two US-based surveys fielded in January and March of 2008 to better understand the viewing habits of the end-user and his/her demands. In addition, the report includes a forecast for the regional breakup of viewed online videos and its top line revenue potential.
A Reporter's Primer on US DTV Transition With Links
On February 17, 2009, nearly 1,600 full-power TV stations in the United States will turn off their analog transmissions. This epochal event will have many far-reaching effects on the entire television market. This primer presents "talking points" and contact information to permit reporters to quickly get up to speed on a wide variety of issues related to the DTV transition.
PLEASE INCLUDE THESE WEB URLs in your articles: FCC official DTV transition web site: http://www.dtv.gov Broadcast Industry consumer information: http://www.dtvtransition.org
In-Stat performed a consumer survey in late 2007 with over 1,200 respondents. They were over age 18, had a broadband Internet connection to their home, and a TV set. We asked them to rate their level of awareness of the DTV transition. Younger females had simply not yet heard of the DTV transition, most males had heard of it. Only 50 to 54-year-old males showed high awareness and are making plans. You can use this data to target your articles to appeal to the audiences of your publication.
TEN constituencies have a stake in the DTV Transition: -US Congress, FCC, and NTIA -US Full Power Broadcasters -US Low Power Broadcasters -US Consumers Who Currently Use an Antenna -US Consumers Who Currently Get Subscription TV -US Major Cable TV Companies -US Smaller Cable TV Companies -US Direct-to-Home Satellite Companies -US TelcoTV (IPTV) Companies -Consumer Electronics Manufacturers
Revenue Opportunities Abound Worldwide in Online and Mobile Music Distribution
Consumers continue to enthusiastically embrace digital music. Digital music sales represented 10% of the total worldwide music market in 2007, up from 6% in 2006. In-Stat expects that by 2012, digital music sales will represent an impressive 40% of all music purchased worldwide.
The popularity of digital music formats differs depending on region. For example, the Internet remains the primary distribution channel for digital music in the US; whereas full-track downloads to mobile phones is the primary digital music format in Japan.
In-Stat's latest report focuses on the online distribution of digital music. However, in an effort to understand how the growth in the mobile music market may impact online music, In-Stat includes discussion around new developments in mobile music, with a focus on full-track downloads to mobile phones.
Worldwide forecasts are provided for revenues derived from online music sales and subscription-based music services, physical CD sales online, and full-track downloads to mobile phones. Results from a US-based survey regarding end-users' attitudes and behaviors toward online music and video are also included.
The Revolution WILL be Televised—Directly to Your Handheld!
This presentation is a re-enactment of the keynote speech given by In-Stat analyst Gerry Kaufhold at ARC International’s ConfigCon Silicon Valley 2007. It includes slides along with an audio recording of analyst commentary.
The presentation explores how low-power, high-performance semiconductors are creating a revolution that brings high-quality video, audio, music and information directly into users’ hands and how the user experience of today’s portable market is quickly outpacing what traditional service providers can deliver. It also debunks the widespread notion that consumers have to wait for the broadcast TV networks and movie studios to get “on board” with electronic delivery before the market will really blossom. Forecasts for WiFi “hotspots”, WiMAX devices, and four categories of portable devices are included.
